Kampala — Multiplex Uganda, the managers of street parking in Kampala has dragged Posta Uganda, the providers of postal services to court over failure to pay a debt of Ushs 629 million (USD 241,923).
Multiplex claims Posta pulled off the stunt by failing to pay a debt that accrued from the breach of contract. Multiplex entered into a contract with Posta to clean and paint the exterior wall of Posta building and a notice of award of contract was displayed in 2007.
The two parties further executed general conditions of contract for procurement works in which Posta undertook to pay Multiplex within 30 days of the date of each certificate and interest upon late payment of the sum at commercial rate of borrowing from the date on which payment should have been made up to the date of the last payment.
In 2008, Multiplex completed the work and sent first certificate of Ushs 155 million (US $ 59615) but Posta cleared only Ushs 100 million (US $ 38461) leaving a balance that has not been cleared to this date the balance has not been cleared.
Multiplex continued to issue more certificates of Ushs 69 (US $ 2653) and 170 (US $ 65384) million but were never paid and no advance on them was made.
"We have since made several demands for the outstanding payment to no avail" reads the plaint lodged in the High Court's commercial division.
As a result of failure to pay, Multiplex contends that it has suffered and continues to suffer losses which it wants Posta to cover by way of general damages and default amount.
As per the terms and conditions of the contract, the money gained interest to the sum of Ushs 629 million. It went ahead to serve a statutory notice of intention to sue with no reaction from Posta.
On top of refunding Ushs 629 million, Multiplex demands Posta to pay interest on the money quoted as calculated from the time of completion of the works.
Multiplex also seeks the refund of money that it will spend on prosecuting Posta in court.
Commercial court's Justice Madramac is expected to preside over the case after the break off very soon.
Credit: V-Park's Team
25 July 2011